Well I guess we should buy, Lenny Dykstra says so. I heard on CNBC yesterday that former major leaguer Lenny Dykstra is a fund manager and is buying Oil stocks right now. I heard the interview, and he sure sounds like he has no business running a fund. This has bad ending written all over it. Maybe I will find a way to short him!
Buying into these huge declines can at times be rewarding, but it is catching the falling dagger. I had my head handed to me more than enough times in my early days, to not try this any more. I have no idea where the bottom is, but I will throw this out there: since we rose on no fundamentals, why can't we decline the same amount, due to the same lack of fundamentals?
The hard demand numbers never justified the exponential rise and now the fraud in gasoline pricing is becoming clear. Gas prices are not dropping, I wonder why? The fact of the matter is that these speculative price moves that we often see in Oil, Metals, Real Estate, are the result of basic human emotions acting collectively. As a result, it is impossible to measure when these momentum driven price moves, like this one downward, will run out of steam.
Stick with the trend, short the rallies and do not be a hero catching the knife.